The latest disclosures include a finding that Goodling rejected the application of a career terrorism prosecutor for a job at Justice Department headquarters because his wife was active in local Democratic politics. The report said a less-qualified candidate was hired.
Goodling also sought out the advice of the White House and other Republicans in filling vacant immigration judge positions. Goodling -- who declined to be interviewed by the authors of the report -- previously testified that, based on advice from Sampson, she incorrectly had believed that it was legal to consider political factors in selecting judges.
The report found that Gonzales was unaware of many of the hiring decisions, and took action when he realized there were problems.
Gonzales' lawyer, George J. Terwilliger III, said Monday that the report was a measure of vindication for the former attorney general.
Atty. Gen. Michael B. Mukasey said in a statement that he was "of course disturbed" by the findings, and noted that the department had taken action to head off future abuses.
A spokeswoman for Glenn A. Fine, the Justice Department inspector general, declined to comment when asked why the report did not address whether Goodling had retaliated against Chiara as well as Hagen.
The office is preparing a separate report on the firings of the nine U.S. attorneys, and some observers speculated that the circumstances surrounding the dismissal of Chiara may be addressed there.
Hagen was hired by Chiara in Grand Rapids about a year after Chiara was appointed by President Bush to lead the U.S. attorney's office in western Michigan. The women had known each other since they were county prosecutors together in the 1990s. After Hagen joined the U.S. attorney's office, the women would often commute together to work.
Hagen was hired to focus on crimes affecting Native Americans -- a priority of Chiara's -- and she was successful, winning an award from the director of the administrative office in Washington overseeing U.S. attorneys.
The report does not address how the rumors about sexual orientation began. The report also says there were rumors that the women "took government trips together" and that Hagen "received large bonuses." But it found that allegations about the supposed financial benefits were never investigated or referred for investigation, and thus remained unsubstantiated.
Lisa Banks, Hagen's attorney, said Monday that all of the allegations were untrue.
